Professor’s Comments December 29, 2017

Posted by OMS  at December 29th, 2017

I really don’t have much to report today as yesterday’s low volume session didn’t change things much.  The market indicators still have a mostly positive bias, and the final days of the year are also usually positive.  So, it’s still likely that the Dow will test the 25,000 level at some point during the next week or so.

On the other hand, the Hi-Lo indicator turned negative after yesterday’s session, and that’s usually a reliable sign that the internals are weakening.  Also, QID and TWM have appeared on the Dean’s List, which tells me that while the large cap industrial stocks might push higher, large cap technology stocks and small stocks on the RUT might have a tougher time of it.

My VTI-volume indicators are still positive, but the volume portion of the indicator is weakening on all indexes.  As long as the VTI-volume indicator, the DMIs, and the Sector Ratio remain positive, the markets should continue to push higher.

Yesterday’s Sector Ratio closed at 21-3 positive, with PharmaBio moving back on the Weak List, replacing the Semis. The Auto Sector had a large negative Delta Trend Score (DTS) yesterday (-110). Large changes in the DTS usually lead to significant changes in price.

I also noted that the Bollinger Bands on the Auto Sector have tightened, so it’s something to watch as we move into the new year. My VTI-volume indicator on the Auto Sector is still positive.

I won’t be doing any trading on this last day of the year. I’ll be unpacking.

I wish you a Happy New Year and continued success with your trading.

That’s what I’m doing.

h

Market Signals for

12-29-2017

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